U.S. Congress urged to crack down on Chinese investment as Canada opens door

A U.S. congressional watchdog is calling for stricter oversight of investments or takeovers by Chinese companies and a ban on Beijing's state-owned or state-controlled entities from buying U.S. assets – a dramatically different approach to China than the one Ottawa is taking.

The annual report to Congress by the U.S.-China Economic and Security Review Commission arrives shortly before Prime Minister Justin Trudeau is expected to begin free-trade talks with China that could ultimately see Canada relax controls over Chinese investment in this country.

The federal government has already signalled a greater willingness than the previous, Conservative government to open Canada's economy to Chinese investment, allowing a high-tech takeover that was banned under former prime minister Stephen Harper to proceed and approving another one without a formal national security review.